Electricity distribution company Caruna to raise prices again

Expect your household electricity bills to go up by almost 4% as Caruna covers the cost of ongoing network improvements.

File picture of electricity pylons / Credit: iStock

Electricity distribution company Caruna Oy is to raise its prices again, going up an average of 3.9%.

Sister company Caruna Espoo Oy’s prices remain unchanged.

Caruna says the price increase is needed due to network improvement projects such as clearing trees from near power lines, increasing electricity network automation and underground cabling.

This is the second time in as many years the company has increased its prices for customers.

In 2018 bills jumped 6.5% which meant in an average apartment an increase of €1.5 per month or €18 per year.

There are currently 77 electricity distribution companies operating in Finland and in the last year nearly 40 of them increased their distribution prices. So far this year 20 network companies have raised their prices according to The Household Association Omakotiliitto.

The Finnish energy authority limits price increase to 15% over a 12-month period and the overall pricing level is monitored in four-year cycles.

Caruna however has filed a request to the authority that would allow it to continue raising electricity distribution prices for an eight-year period instead of four.

That’s due, they say, to the losses the company has made while investing in new reliable weather-proof electricity network systems which were required by an electricity market act.

“We are seeking an extension for a period from the current four years to eight years because we want to extend the cost of network construction over a longer period of time and thus offset our customer pricing” Caruna Oy announced earlier this year.